I recently looked at how gold and silver, particularly mining stocks, are lagging in this market recently, but we’re seeing some weakness in other metals-related areas like steel stocks.
If you take a look at steel stocks, like United States Steel (NYSE:X), unlike the market that is nowhere close to filling the gap from the beginning of the year, looking at stocks like X and its peers and they’ve not only filled the gap, they’ve kept going down just a tad.
Then you take a look at Joy Global (NYSE:JOY). On the chart in the video, I show you the gap up at the beginning of the year, and now we see a rollover type of pattern.
So, there’s probably some stuff that’s getting closer to coming together for a trading opportunity. One question of with these commodity/high-beta stocks is: Are they going to fill the gap and keep going to the south?
It’s the same question being asked of stocks like Apple (NASDAQ:AAPL): Are they going to fill the gap and just keep on going down, down, down to new 52-week lows, or are they going to find some footing and start to follow the market a little bit?
Time will tell but it’s going to be something that we’re going to know within the next few days.
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. For more information on which service is for you click here.